Gold prices remained stable during early Thursday trading
GOLD
Gold prices remained stable during early Thursday trading, as the US dollar also traded flat and fears over an escalation of the banking crisis continued to recede. The price of bullion has dropped more than 2% in relation to the one-year-maximum touched during the previous week, when fears that the turbulence felt in the banking sector could spread spooked the markets, driving haven demand for gold and downgrading expectations over the pace and scope of the Fed’s rate hiking cycle. Since then, there has been an improvement in risk sentiment, with investors feeling more reassured that a serious crisis in the financial sector is not imminent. This dynamic created a double set-back for gold, with higher treasury yields and a strengthening of the dollar penalizing prices, which also suffer due to less safe-haven related demand.
Ricardo Evangelista – Senior Analyst, ActivTrades
Gold prices remained stable during early Thursday trading, as the US dollar also traded flat and fears over an escalation of the banking crisis continued to recede. The price of bullion has dropped more than 2% in relation to the one-year-maximum touched during the previous week, when fears that the turbulence felt in the banking sector could spread spooked the markets, driving haven demand for gold and downgrading expectations over the pace and scope of the Fed’s rate hiking cycle. Since then, there has been an improvement in risk sentiment, with investors feeling more reassured that a serious crisis in the financial sector is not imminent. This dynamic created a double set-back for gold, with higher treasury yields and a strengthening of the dollar penalizing prices, which also suffer due to less safe-haven related demand.
Ricardo Evangelista – Senior Analyst, ActivTrades
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.